R3 Vascular Secures $87 Million in Series B Financing and Appoints New CEO
R3 Vascular Inc., a Mountain View-based medical device company, has successfully closed an $87 million Series B financing round. This significant financial boost is aimed at advancing the company's innovative bioresorbable scaffold technology, specifically designed for treating peripheral arterial disease (PAD). The financing round was spearheaded by Deerfield Management, with contributions from existing shareholders such as 415 Capital and a strategic investor.
The proceeds from this round will primarily fund the ELITE FDA IDE pivotal trial of R3 Vascular's MAGNITUDE® bioresorbable scaffold, targeting below-the-knee (BTK) PAD. Additionally, the funds will support further research and development, global regulatory submissions, scaling up manufacturing processes, and initial commercialization efforts. MAGNITUDE® represents a next-generation bioresorbable scaffold with the potential to significantly impact the treatment of Chronic Limb-Threatening Ischemia caused by BTK PAD.
In conjunction with the financing announcement, R3 Vascular has appointed Christopher M. Owens as its new President and CEO. Owens, a seasoned executive with over 30 years of experience in the medical device sector, succeeds founder Kamal Ramzipoor, who will transition to the role of Chief Technology Officer (CTO). Owens' previous leadership roles include serving as President and CEO of Gynesonics and IDEV Technologies, highlighting his extensive expertise in building and leading medical device companies.
R3 Vascular's bioresorbable scaffolds are crafted from a unique ultra-high molecular weight polylactic acid polymer, combined with proprietary stent design and processing techniques. This innovative approach allows the sirolimus-coated scaffolds to be thinner, stronger, and more flexible, even at extended lengths. The scaffolds are engineered to gradually absorb into the tissue, promoting a more naturally functioning vessel.
Jack Springer, Executive Chairman of R3 Vascular, expressed enthusiasm about the Series B financing and Owens' appointment, emphasizing the company's commitment to advancing its bioresorbable scaffold technology. Kamal Ramzipoor, the company's founder and new CTO, highlighted the transformative potential of R3 Vascular's technology in improving long-term patient health outcomes.
David Neustaedter, Ph.D., from Deerfield Management, also commented on the promising nature of R3 Vascular's intervention for BTK PAD, underscoring the potential to reduce the high rate of lower extremity amputations. With PAD affecting an estimated 8-12 million people in the U.S. and the global peripheral vascular device market projected to grow significantly, R3 Vascular's advancements come at a critical time for patients and healthcare providers alike.